In Brief
A customs house agent (CHA), K.M. Ganatra & Co., unlicensed transferred its licence to unauthorised persons who used it to conduct fictitious export transactions, causing revenue loss. The Commissioner permanently revoked the licence. The Tribunal restricted revocation to three years on grounds of leniency, and the High Court affirmed this. The Supreme Court held that where serious, habitual violations involving fraudulent activity and revenue loss are established, the Tribunal's discretion to soften punishment through time-limited revocation is inappropriate. Permanent revocation was restored because CHAs occupy positions of crucial trust and any breach of licensing obligations warrants prescribed punishment.
The lawyer headnote and full judgment text are available to registered users.